U.S.-based CBD maker CV Sciences said it had operating losses of $4.7 million in the second quarter of 2020, a $6 million swing compared to second quarter profits of $1.3 million in 2019. Revenues fell to $5.4 million in the period, plunging 68% from $16.9 million recorded in the second quarter of last year, the San Diego-based company said in an earnings report. The revenue is also a decrease from the $8.3 million CV Sciences reported in the year’s first quarter ending March 31.
The company attributed the losses, in part, to the COVID-19 pandemic.
“We continue to effectively navigate the challenging industry and COVID-19 environment by controlling costs and accelerating new product and category development, while continuing to drive distribution growth,” CEO Joseph Dowling said. CV Sciences products are now in 6,325 stores in the USA, up from 5,799 at the end of the first quarter of 2020, according to the report.
“We remain highly confident in the long-term outlook for the hemp-derived CBD category and will continue to position ourselves for the future of CBD as the regulatory environment continues to develop,” Dowling said.
New product launches
CV Sciences also announced it has launched CVTM Acute, a formula that supports the immune system and respiratory health, and Happy Lane, a THC-free CBD brand it will market in convenience stores.
CV Sciences did $2.0 million in online sales during the second quarter, and reported its cash balance as $8.1 million.